Money Blog - My (fictional) rich uncle


THE SCENARIO There's been a lot of talk recently in the news about the estate tax repeal, so today I'll be doing a problem related to it. Please note that I don't have a rich uncle who passed away this year. This is just something of a thought experiment. Currently, the estate tax only applies to estates above $5.49 million for single people and around $11 million for married couples. That is, the first $5,490,000 of the estate is exempt from the tax. Let's say that my uncle had the median American wealth in January of 1989, $85,060. And let's say that he sadly passed away this January (2017), and his estate was worth enough to pay the estate tax on $10,000 of his wealth. The question: What was my uncle's average annual ROI on his wealth if he invested all of it ev... Read more...